16. How prices allocate resources Suppose that there are three beachfront parcel

Question

16. How prices allocate resources Suppose that there are three beachfront parcels of land available for sale in Huntington and six people who would each like to purchase one parcel Assume that the parcels are essentially identical and that the minimum selling price of each is $745,000. The following table states each person's willingness and ability to purchase a parcel Bob Cho Eric Ginny Sean Yvette Willingness and Ability to Purchase (Dollars) 770,000 720,000 690,000 680,000 900,000 810,000 Which of these people will buy one of the three beachfront parcels? Check all that apply D Bob Cho Eric Ginny Sean Yvette Assume that the three beachfront parcels are sold to the people that you indicated in the previous section. Suppose that a few days after the last of those beachfront parcels is sold, another essentially identical beachfront parcel becomes available for sale at a minimum price of $732,500. This fourth parcel be sold, because will purchase it from the seller for at least the minimum price

Explanation / Answer

These buyers are :Bob, Sean and Yvette.

The fourth parcel will not be sold because nobody will purchase it from seller, because rest three individuals still gave a willingness to pay of less than $745,000

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